A non-recourse loan is a type of debt where the lender’s recovery is limited to a specific asset pledged as collateral, and the borrower cannot be personally pursued for any remaining balance if the asset’s value falls short. For investors, non-recourse financing shifts downside risk onto the lender and protects a borrower’s other assets, which can affect a company’s risk profile, borrowing costs, and potential returns — much like insurance that covers only the item left as collateral.
cmbsfinancial
Commercial mortgage-backed securities (CMBS) are financial products made by bundling many commercial real estate loans — such as those on office buildings, shopping centers, and apartment complexes — and selling pieces of that bundle to investors. Think of it like a fruit basket: each investor owns a share of many loans rather than one property, so returns come from the borrowers’ mortgage payments and the value of the underlying properties; investors watch CMBS for steady income but also for sensitivity to property market conditions, tenant occupancy and interest rates.
amortizationfinancial
Amortization is the process of spreading a large cost over a series of future periods, either by gradually writing off the value of an intangible asset (like a patent or license) or by showing how loan principal is paid down over time. For investors it matters because amortization affects reported profits and cash flow — similar to slicing a big bill into smaller monthly payments — and therefore influences valuations, comparisons between companies, and expectations for future earnings.
capital structurefinancial
Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL Properties (NYSE:CBL) announced today that it has completed the refinancing of Fayette Mall, a dominant super-regional enclosed mall located in Lexington, Kentucky. The financing replaces the existing $98.6 million loan with a new $97.5 million, five‑year non-recourse CMBS loan with a fixed interest rate of approximately 7.25%. The new loan’s more favorable amortization structure results in approximately $5.0 million in additional cash flow to CBL.
“This refinancing underscores the strength and attractiveness of high‑quality retail real estate in the capital markets and reflects lender confidence in Fayette Mall’s performance and long‑term outlook,” said Ben Jaenicke, CBL’s EVP - Chief Financial Officer. “We continue to make significant progress addressing upcoming maturities through disciplined, non-recourse, asset-level financing that improves our cash flows and creates flexibility in our capital structure. Our maturity profile in 2027 and beyond is well-laddered with modest near-term maturities.”
Fayette Mall is one of CBL’s flagship assets and benefits from strong tenant demand, solid operating fundamentals, and its position as the leading retail destination in the Lexington market.
About CBL Properties
Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 88 properties totaling 55.6 million square feet across 23 states, including 55 high-quality enclosed malls, outlet centers and lifestyle retail centers as well as more than 25 open-air centers and other assets. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.
Information included herein contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including without limitation the Company’s Annual Report on Form 10-K and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein, for a discussion of such risks and uncertainties.
